What happens to account receivables when a business goes from a proprietorship to a partnership?

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1284931

2026-03-26 05:45

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Unless there is an explicit statement to the contrary in your partnership agreement, both partners are jointly and severally entitled to collect them. If you have substantial receivables and wish to enter into a partnership you should list them in detail and include the mutually-agreed-upon treatment of them in a notarized document signed by both parties.

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